[Resolved] Problem with inline images – wp-content/uploads incorrect

Hi all, I am not sure when this happened, maybe when upgrading to Ronan, but currently if I make a post and upload an image, the image is uploaded to the /wp/wp-content/uploads directory as normal, but the editor and subsequently the blog, is trying to show /wp-content/uploads as base path for the image -> no image to be seen.
I am unsure where the problem lies, if it is functions-post.php that has a problem, wp_upload_dir or wp_upload_bits somehow stripping the basedir or if this a .htaccess issue.
The website is on http://www.mysite.com which is redirected to http://www.mysite.com/wp/index.php using .htaccess which looks like this:
Options +FollowSymlinks
RewriteEngine On
RewriteBase /
RewriteRule ^$ /wp/index.php [L]
<IfModule !mod_rewrite.c>
ErrorDocument 404 /wp/index.php
ErrorDocument 403 /wp/index.php
</IfModule>

Thanks Handysolo, yes, I got headaches doing those and I know there is something wrong :-/
However you have hit the snail on the head, yes I use Firefox 1.5, Windoze XP and have dragged and dropped the images from the upload box.
What is the alternative? (apart from using IExploder).
Thanks, Patrick.